The exchange, Dex, will list options, futures and options on futures for a range of Canadian securities. Ownership of the new company - along with the projected C$26 million ($22.1 million) cost of setting it up - will be 52% to 48% split between TSX and ISE.

David Krell, chief executive of ISE, said that the alliance was the first step towards ISE’s goal of international expansion.

The new bourse is scheduled to commence trading in March 2009, the year when TSX Group’s current non-competition agreement with the Montreal Exchange expires. TSX had previously expressed a desire to move into derivatives through a merger with its Montreal counterpart, although this ultimately failed (See also: TSX will trade derivatives with or without Montreal Exchange).

A quant at Citi has revived debate about the changing nature of the profession (www.risk.net/2417747). The scope is narrower, he claims; the job has been dumbed down, and today's quants are little more than programmers. Is he right?